What Does 'Subject to Financing' Mean in a Manitoba Offer to Purchase?
This answer covers the law of Manitoba.
A subject-to-financing condition makes your offer to purchase depend on you getting mortgage approval by a set date. Whether a financing condition lets you end the deal depends on its exact wording and the rest of your offer, which a lawyer can confirm.
The deadline is the date written into your offer, so read it closely, including how it counts days and how notice must be given. What happens if the lender says no depends on the wording of your condition and your offer. Because the steps depend on your situation, talk to a lawyer before the deadline passes about your options, such as ending the deal, asking for more time or trying another lender.
Keep in mind that a financing condition is separate from other protections. A condo purchase has its own seven-day cooling-off period, which starts on the later of signing and the seller delivering the disclosure documents. If you plan to use the Home Buyers' Plan for your down payment, the withdrawal limit is $60,000. Have a lawyer review the condition wording before you sign.
Key takeaways
- A financing condition makes your offer depend on getting mortgage approval by a date written into the offer.
- The deadline and the way you must give notice come from your offer, so read both closely.
- If the lender says no, what you can do depends on the wording of the condition, so get advice before the deadline passes.
- A condo purchase has its own seven-day cooling-off period that is separate from a financing condition.